No deals price; Hill-Rom shops offering; market awaits likely KIK Custom, Oneok pricings

By Paul Deckelman and Paul A. Harris

New York, Aug. 17 – The high-yield primary market saw its third consecutive session without any new dollar-denominated, fully junk-rated offerings from domestic or industrialized-country borrowers being priced.

But syndicate sources on Monday said that as many as three pricings might potentially take place during Tuesday’s session.

They noted the rollout on Monday of Hill-Rom Holdings Inc.’s $425 million eight-year offering, which was shopped to investors via a conference call, with whispers about its likely yield level subsequently heard.

Two other potential transactions already on the forward calendar from last week were also expected to get done during Tuesday’s session.

Price talk emerged on KIK Custom Products Inc.’s $390 million offering of eight-year notes.

Meanwhile, Oneok Inc. is expected to wrap up its roadshow for its $500 million of eight-year notes on Tuesday, with pricing expected any time thereafter.

In the secondary market, flows were again described as light.

Recent issues such as Post Holdings, Inc.’s $1.2 billion two-part offering were seen continuing to hold around the levels at which they had finished on Friday.

Traders saw energy names such as California Resources Corp.’s paper lower amid the continued slide in crude oil prices.

Statistical measures of junk market performance were mixed for a third straight session.

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